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AN » Topics » Our revolving credit facilities and the indenture relating to our senior unsecured notes contain certain restrictions on our ability to conduct our business.This excerpt taken from the AN 10-K filed Feb 24, 2005. Our revolving credit facilities and the
indenture relating to our senior unsecured notes contain certain
restrictions on our ability to conduct our
business.
The indenture relating to the 9% senior unsecured notes due August 2008 and the credit agreements relating to our two revolving credit facilities contain numerous financial and operating covenants that limit the discretion of our management with respect to various business matters. These covenants place significant restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, to make certain payments (including dividends and repurchases of our shares) and investments, and to sell or otherwise dispose of assets and merge or consolidate with other entities. Our revolving credit facilities also require us to meet certain financial ratios and tests that may require us to take action to 14
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reduce debt or act in a manner contrary to our
business objectives. A failure by us to comply with the
obligations contained in our revolving credit facilities or the
indenture could result in an event of default under our
revolving credit facilities or the indenture, which could permit
acceleration of the related debt and acceleration of debt under
other instruments that may contain cross-acceleration or
cross-default provisions. If any debt is accelerated, our assets
may not be sufficient to repay in full such indebtedness and our
other indebtedness. In addition, we have granted certain
manufacturers the right to acquire, at fair market value, our
automotive stores franchised by that manufacturer in specified
circumstances in the event of our default under the indenture
for our senior unsecured notes due August 2008 and the credit
agreements for our two revolving credit facilities.
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